Oblong Announces Compliance with Nasdaq Bid Price Requirement

Rhea-AI Summary

Oblong (Nasdaq: OBLG) has regained compliance with Nasdaq's minimum bid price requirement after its stock traded above $1.00 for 10 consecutive business days. CEO Peter Holst expressed satisfaction with this development, stating that Oblong is now back in full compliance with Nasdaq's listing requirements.

As of June 30, 2024, Oblong reported $5.9 million in cash and no debt, which the company believes provides liquidity into the first half of 2026. The company is actively seeking inorganic growth opportunities through M&A and exploring strategic alternatives, including potential business combinations, reverse mergers, or an outright sale of the company.

Positive

• Regained compliance with Nasdaq's minimum bid price requirement
• $5.9 million cash position with no debt as of June 30, 2024
• Liquidity projected to last into the first half of 2026
• Actively seeking inorganic growth opportunities through M&A

Negative

• None.

Insights

Financial Analyst

Oblong's regained compliance with Nasdaq's minimum bid price requirement is a positive development, potentially averting the risk of delisting. However, this news alone doesn't significantly alter the company's fundamental financial position. The reported $5.9 million cash reserve with no debt provides a runway into 2026, which is reassuring for short-term stability but may not be sufficient for long-term growth without additional funding or revenue generation.

The company's focus on inorganic growth through M&A and exploration of strategic alternatives, including a possible business combination, reverse merger, or sale, suggests a lack of organic growth opportunities. This strategy carries both potential benefits and risks. While it could lead to value creation, it also indicates potential challenges in the current business model. Investors should closely monitor the outcomes of these strategic initiatives, as they will likely have a significant impact on the company's future direction and valuation.

Market Research Analyst

Oblong's situation reflects broader trends in the tech sector, particularly for smaller players in the collaboration solutions market. The company's struggle to maintain a $1 share price suggests challenges in investor confidence and market positioning. The multi-stream collaboration solutions market is highly competitive, dominated by large tech giants, making it difficult for smaller companies like Oblong to gain significant market share.

The company's strategic pivot towards M&A and potential sale options indicates a recognition of these market realities. This approach could be seen as a proactive attempt to create value in a challenging environment. However, the success of this strategy will depend heavily on the quality of potential acquisitions or merger partners and the company's ability to integrate and leverage these opportunities effectively. Investors should consider the broader market dynamics and competitive landscape when evaluating Oblong's prospects.

DENVER--(BUSINESS WIRE)-- Oblong, Inc. (Nasdaq: OBLG) (“Oblong” or the “Company”), the award-winning maker of multi-stream collaboration solutions, today announced that the Company received formal notice from The Nasdaq Stock Market LLC ("Nasdaq") that the Company has regained compliance with Nasdaq's minimum bid price requirement set forth in Nasdaq Listing Rule 5550(a)(2), after the Company’s stock traded above $1.00 per share for 10 consecutive business days. Accordingly, Nasdaq has advised that the matter is now closed.

"We are pleased to report that Oblong is now back in full compliance with Nasdaq’s listing requirements," said Peter Holst, CEO of Oblong. "As of June 30, 2024, we had $5.9 million of cash and no debt. We believe our existing cash provides us liquidity into the first half of 2026. We remained focused on actively seeking inorganic growth opportunities through M&A. Our exploration of strategic alternatives is diverse, encompassing the possibility of a business combination; a reverse merger; or outright sale of the company. Each option is being carefully evaluated to ensure it aligns with our overarching goal of sustainable growth and value creation.”

About Oblong, Inc.

Oblong (Nasdaq: OBLG) provides innovative and patented technologies that change the way people work, create, and communicate. Oblong’s flagship product Mezzanine™ is a meeting technology platform that offers simultaneous content sharing to optimize audience engagement and situational awareness. For more information, visit www.oblong.com and Oblong’s Twitter and Facebook pages.

Forward looking and cautionary statements

This press release and any oral statements made regarding the subject of this release contain forward- looking statements as defined under Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, that address activities that Oblong assumes, plans, expects, believes, intends, projects, estimates or anticipates (and other similar expressions) will, should or may occur in the future are forward-looking statements. Oblong’s actual results may differ materially from its expectations, estimates and projections, and consequently you should not rely on these forward- looking statements as predictions of future events. Without limiting the generality of the foregoing, forward-looking statements contained in this press release include statements relating to the Company’s exploration of strategic alternatives and the Company’s liquidity projection. There can be no assurance that the strategic review being undertaken will result in a merger, sale or other business combination involving the Company. The forward-looking statements are based on management’s current belief, based on currently available information, as to the outcome and timing of future events, and involve factors, risks, and uncertainties, including the volatility of market price for our securities, that may cause actual results in future periods to differ materially from such statements. A list and description of these and other risk factors can be found in the Company’s Annual Report on Form 10-K for the year ending December 31, 2023 and in other filings made by the Company with the SEC from time to time. Any of these factors could cause Oblong’s actual results and plans to differ materially from those in the forward-looking statements. Therefore, the Company can give no assurance that its future results will be as estimated. The Company does not intend to, and disclaims any obligation to, correct, update, or revise any information contained herein.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240912460748/en/

Investor Relations Contact

David Clark

investors@oblong.com

(213) 683-8863 ext. 5

Source: Oblong, Inc.

FAQ

What did Oblong (OBLG) announce regarding Nasdaq compliance?

Oblong announced that it has regained compliance with Nasdaq's minimum bid price requirement after its stock traded above $1.00 per share for 10 consecutive business days.

What is Oblong's (OBLG) current financial position as of June 30, 2024?

As of June 30, 2024, Oblong reported $5.9 million in cash and no debt, which the company believes provides liquidity into the first half of 2026.

What strategic alternatives is Oblong (OBLG) exploring?

Oblong is exploring various strategic alternatives, including potential business combinations, reverse mergers, or an outright sale of the company, to achieve sustainable growth and value creation.

How long does Oblong (OBLG) expect its current cash position to last?

Oblong believes its existing cash provides liquidity into the first half of 2026.